HSBC is winding down its retail banking business in Australia, bringing an end to one of the country’s more unusual airline-linked credit cards: the HSBC Star Alliance Credit Card.
The bank announced today that it will close its Australian retail banking operation in phases over the next 18 months, subject to regulatory approvals. The wind-down includes its credit card portfolio, meaning the Star Alliance Credit Card will eventually disappear from the Australian market.
HSBC has stopped accepting new applications for all Australian retail products, including credit cards, as of 31 July 2026. Existing cardholders can continue using their cards for now, with HSBC saying there are currently no changes to existing card services, rewards or benefits.
Westpac Altitude Qantas Black
- Bonus points
- Up to 150,000 Qantas Points
- Annual fee
- $295 p.a. plus $75 annual Rewards fee
- Earn
- Earn 1.2 Qantas Points per $1 on international transactions, 0.8 Qantas Points per $1 on everyday spend, and 0.5 Qantas Points per $1 on all other eligible spend up to $10,000 per statement period. Then 0.25 Qantas Points per $1 thereafter
Westpac Altitude Qantas Black
- Bonus Points
- Up to 150,000 Qantas Points
- Annual Fee
- $295 p.a. plus $75 annual Rewards fee
- Earn
- Earn 1.2 Qantas Points per $1 on international transactions, 0.8 Qantas Points per $1 on everyday spend, and 0.5 Qantas Points per $1 on all other eligible spend up to $10,000 per statement period. Then 0.25 Qantas Points per $1 thereafter
Westpac is offering up to 150,000 bonus Qantas Points for new cardholders of the Westpac Altitude Qantas Black. New cardholders will receive 90,000 Qantas Points when you spend $6,000 or more on eligible purchases within 90 days of approval and an additional 60,000 Qantas Points after spending $6,000 on eligible purchases within 90 days of card anniversary in year 2. This card also earns up to 1.2 Qantas Points per $1 spent on eligible purchases, and includes two Qantas Club Complimentary Lounge Invitations each year plus complimentary international travel insurance. The annual card fee is $295, plus a $75 rewards fee.
An end to a unique Star Alliance benefit
The HSBC Star Alliance Credit Card has been particularly popular with frequent flyers because of its ability to unlock Star Alliance Gold status relatively easily.
New cardholders could fast-track to Star Alliance Gold after spending $4,000 on eligible purchases within the first 90 days. Depending on the nominated frequent flyer program, this could provide status such as Air Canada Aeroplan 50K, unlocking Star Alliance Gold benefits for up to two years – including lounge access when flying eligible Star Alliance airlines.
The card also earns Star Alliance Points, which you can convert into miles or points with participating Star Alliance frequent flyer programs. That’s a particularly useful proposition for Australian frequent flyers, given there are relatively few ways to earn Star Alliance status through an Australian credit card.
What happens to existing cardholders?
For now, it’s business as usual. HSBC says existing credit card accounts will continue to operate under their current terms and conditions until further notice. However, the bank has already stopped accepting new credit card applications. It has also stopped taking requests for additional cardholders, credit limit increases, balance transfers and product transfers.
The bank says customers will receive dedicated communications with more information and timelines for their individual products in the coming weeks. We don’t yet know how HSBC will handle the shutdown regarding existing status and points in the Star Alliance Rewards program.
The HSBC Star Alliance Rewards terms state that membership in the program is automatically cancelled when the associated credit card account is closed. The terms also mention that Star Alliance airlines can withdraw any status tiers granted by the program if the card is closed.
That means anyone holding the card primarily for Star Alliance Gold should pay close attention to HSBC’s upcoming communications. Hopefully they will provide a goodwill extension, or at least ‘grandfather’ benefits until their current expiration date.
Summing up
The closure of its credit cards is part of a much broader retreat by HSBC from Australian retail banking. Australian points and status collectors will certainly miss the HSBC Star Alliance Credit Card once it’s gone.
While the points earn rates weren’t exactly spectacular, the card offered a relatively straightforward pathway to Star Alliance Gold, as well as a way to earn and transfer Star Alliance Points. We’ve reached out to Star Alliance to see if there are any plans to move the card to a different banking partner after the closure.
For existing cardholders, there’s no need to act immediately. Keep an eye out for HSBC’s communications and consider where you’ll go once HSBC shuts down the card.
